The estimated state budget for next year will include MVR 177 million to cover the rent reduction of Hiyaa flats.
In the budget submitted by the Finance Ministry to Parliament, the amount is included in the name of housing subsidy. The total included is MVR 177,408,000. Urbanco will receive this amount.
The rent for Hiyaa flats was reduced to MVR 5,300 in late April this year.
The previous rent for the Hiyaa flats was MVR 7,500. Urbanco charged MVR 8,500 per month with maintenance fees.
Many residents have repeatedly expressed concern over the high rent payments for the Hiyaa flats. However, the government's response at the time was that the rent could not be reduced by that amount.
There are 7,000 flats in the 16 towers of Hiyaa built during the administration of former President Abdulla Yameen Abdul Gayoom. The rent for the Hiyaa flats was fixed at MVR 5,600 during that administration.
Therefore, the rent payment period has been extended from 25 years to 27 years. But Urbanco had earlier said it would not charge any additional interest on the loan for the extended period.